Vice President, Kashim Shettima, speaking at the 2024 Bankers’ Committee annual retreat in Abuja on Friday asked the Central Bank of Nigeria (CBN) and commercial banks to address the lingering issues of cash scarcity and exploitative charges by the point-of-sale (POS) operators, which have been a source of frustration for Nigerians.
The Vice President represented by Dr Tope Fasua, the Special Adviser to the President on economic matters, emphasised the need for swift action to enhance financial inclusion and restore public trust in the banking sector.
He said, “We want to make this an opportunity to appeal strongly to the committee to orderly clear up sundry issues in the sector, some of which are impeding the government’s efforts at financial and economic inclusion.
“There seems to have been some moral hazard and other selection problems with the involvement of street-type POS merchants.
“Nigerians complain about high and arbitrary charges and exploitation by road agents. We are sure you will be able to tackle this with concerted efforts,”
He pointed out that many Nigerians still struggle to access cash for essential needs and lamented the exploitation by street-level POS merchants, who impose high and arbitrary charges highlighting the administration’s commitment to reducing Nigeria’s debt-to-GDP ratio to about 30% by the first quarter of 2025.
He called Banks to scale up initiatives that will support Micro, Small, and Medium Enterprises (MSMEs) and urged the Bankers’ Committee to collaborate with federal and state governments to make consumer credit more accessible and affordable.
The retreat has in attendance key stakeholders in the financial sector, focusing on strategies to address economic challenges and foster sustainable growth in Nigeria’s banking industry.
The Vice President stated that the National Bureau of Statistics is working on rebasing the economy, including the GDP and Consumer Price Index.
He noted that the last such exercise took place over a decade ago, contrary to the World Bank’s recommendation for more frequent updates.
Meanwhile, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, explained that the country was grappling with a financial crisis inherited by the apex bank.
Cardoso said, “Over the past eight to nine years, the economy has grown at an average rate of 1.8 per cent annually, while money supply expanded by about 13 per cent. By the end of 2022, the outstanding Ways and Means stood at approximately 11 per cent of GDP, which may well be a world record.
“With such significant challenges, the responses must be equally robust and ambitious. As we engage in discussions over the next few days, we should reflect on the tough times we have faced over the past year and commit to developing solutions that match the scale of these challenges.”
Cardoso urged the committee to deliberate on fostering an environment that encourages innovation and strengthens the social contract with Nigerians, emphasising the need to build a more inclusive economy and address critical issues for the nation’s progress.